Part 3 U.K.Employment income: earnings and benefits etc. treated as earnings

Chapter 6 U.K.Taxable benefits: cars, vans and related benefits

Cars: appropriate percentage: first registered on or after 1st January 1998 U.K.

139 Car with a CO₂ emissions figure: the appropriate percentage U.K.

(1) The appropriate percentage for a year for a car with a CO₂ emissions figure depends upon [F1 whether—

(a) the car is a qualifying low emissions car for that year, or

(b) the car’s CO₂ emissions figure exceeds the lower threshold for that year.]

[F2 (1A) A car is a qualifying low emissions car for any year if—

(a) it has a low CO₂ emissions figure for that year, and

(b) it is not an electrically propelled vehicle, within the meaning of section 140.

(1B) If the car is a qualifying low emissions car for the year, the appropriate percentage is 10%.]

[F3 (2) If—

(a) the car is not a qualifying low emissions car for the year, but

(b) its CO₂ emissions figure does not exceed the lower threshold for the year,

the appropriate percentage for the year is 15% (“the basic percentage”).]

(3) If the car’s CO₂ emissions figure does exceed the lower threshold for the year, the appropriate percentage for the year is whichever is the lesser of—

(a) the basic percentage increased by one percentage point for each 5 grams per kilometre by which the CO₂ emissions figure exceeds the lower threshold for the year, and

(b) 35%.

[F4 (3A) A car has a low CO₂ emissions figure for a year if its CO₂ emissions figure does not exceed the limit for that year in the following Table—

Table

Tax year	Limit (in g/km)
2008-09 and subsequent tax years	120]

(4) The lower threshold is—

[F5 Table

Tax year	Lower threshold (in g/km)
2009-10	135
2010-11	130
2011-12 and subsequent tax years	125]

(5) If the car’s CO₂ emissions figure is not a multiple of 5, it is to be rounded down to the nearest multiple of 5 for the purposes of this section.

[F6 (5A) Subsection (5) does not apply for the purpose of determining whether a car has a low CO₂ emissions figure for a year.]

(6) This section is subject to—

(a) section 141 (diesel cars), and

(b) any regulations made by the Treasury under section 170(4) (power to reduce the appropriate percentage).

Textual Amendments

F1 Words in s. 139(1) substituted (with effect for the tax year 2008-09 and subsequent tax years in accordance with s. 59(10) of the amending Act) by Finance Act 2006 (c. 25), s. 59(2)

F2 S. 139(1A)(1B) inserted (with effect for the tax year 2008-09 and subsequent tax years in accordance with s. 59(10) of the amending Act) by Finance Act 2006 (c. 25), s. 59(3)

F3 S. 139(2) substituted (with effect for the tax year 2008-09 and subsequent tax years in accordance with s. 59(10) of the amending Act) by Finance Act 2006 (c. 25), s. 59(4)

F4 S. 139(3A) inserted (with effect for the tax year 2008-09 and subsequent tax years in accordance with s. 59(10) of the amending Act) by Finance Act 2006 (c. 25), s. 59(5)

F5 S. 139(4) Table substituted (with effect in accordance with Sch. 28 para. 10(1) of the amending Act) by Finance Act 2009 (c. 10), Sch. 28 para. 6

F6 S. 139(5A) inserted (with effect for the tax year 2008-09 and subsequent tax years in accordance with s. 59(10) of the amending Act) by Finance Act 2006 (c. 25), s. 59(7)

Modifications etc. (not altering text)

C1 Ss. 133-142 applied by S.I. 2001/1123, reg. 2 (as amended (6.4.2008) by The Income Tax (Car Benefits) (Reduction of Value of Appropriate Percentage) (Amendment) Regulations 2007 (S.I. 2007/3068), regs. 1, 3)